Thermo Fisher Scientific is buying drug-ingredients maker Patheon for $7.2 billion (TMO, PTHN)

The biotech company Thermo Fisher Scientific has agreed to buy the drug-ingredients maker Patheon for $7.2 billion.

In a statement Monday, Thermo Fisher said it would acquire all outstanding Patheon shares for $35 apiece in cash, 35% higher than where the stock closed Friday.

The deal’s value includes approximately $2 billion of net debt.

Patheon is a contract development and manufacturing organization, or CDMO, and contracts with other companies to develop drugs. By acquiring the company, Thermo Fisher aims to enter what it describes as a high-growth market that helps companies deliver drugs to the market quicker and at lower costs.

“Over the past several years, we have increased our capabilities to become a leading CDMO provider in a highly fragmented market,” Patheon CEO James Mullen said in a statement. “We are confident that our combined offerings and Thermo Fisher’s proven track record of disciplined M&A and successful integrations will take our business to the next level.”

Thermo Fisher was formed in 2006 after a merger by Thermo Electron and Fisher Scientific.

Goldman Sachs is Thermo Fisher’s financial adviser, while Morgan Stanley is working with Patheon.

The deal is expected to close by the end of 2017.